Needs improvement

​​Report finds Houston has room to grow as an attractive city for STEM professionals​​

Houston isn't very attractive of an ecosystem for STEM professionals, according to a new report. Getty Images

Houston has been heralded as a great place to find a job in many instances, so it may come as some surprise that when it comes to science, technology, engineering, and mathematics, the Bayou City isn't primed for professionals.

The city ranked No. 33 out of the 100 largest metros in the United States in a study conducted by WalletHub. The 17 metrics corresponded to professional opportunities, STEM friendliness, or quality of life. Within those categories, Houston ranked No. 47, No. 20, and No. 54, respectively.

Some of the areas where the Houston area stood out is wage, engineering educational opportunities, and projected demand for STEM jobs in 2020. Houston had the highest annual median wage for STEM workers, which was adjusted for cost of living.

While Houston seems to be predicted to need STEM professionals, the city currently has among the worst STEM employment growth and among the highest unemployment rate for STEM professionals with a Bachelor's degree or higher.

Austin, which ranked at No. 4, was the only Texas city to rank higher than Houston, and Dallas followed close behind Houston at No. 38. Dallas actually performed similar to Houston across the categories, while Austin's scores reflected that the city provided the 8th best STEM professional opportunities in the country.

Rounding out the top five on the list was Seattle at No. 1, Boston at No. 2, Pittsburgh at No. 3, and San Francisco at No.5.

In November, Accenture's Brian Richards wrote a guest column for InnovationMap on how Houston could advance as a premier city for tech and innovation. He proffered that STEM talent is a key component the city needs — both coming into the ecosystem as well as remaining here.

"Houston already has tremendous amounts of STEM talent but doesn't produce enough talent or retain enough of the locally-grown talent," he writes. "To jumpstart, we are going to have to import it initially."

Apparently, this isn't an issue unique to Houston. According to Martin Storksdieck, director for the Center for Research on Lifelong STEM Learning in Oregon, while the U.S. has been successfully attracting outsiders to STEM higher education roles, there's a growing need for specific STEM jobs like nurses and computer scientists.

"The US is neither creating, attracting nor retaining middle-skilled STEM professionals in any competitive fashion," Storksdieck says in the report. "[Meanwhile], about half of academic STEM graduate students in the US are foreign born."

As a a part of its annual Inc. 5000 findings, the magazine named Houston the ninth hottest startup city in America. Photo by Tim Leviston/Getty Images

It's not just Texas' weather that's hot. Three Lone Star State cities made Inc. magazine's list of hot startups cities — and Houston came in at No. 9.

The list came out of the Inc. 5000 report — the magazine's list of the fastest-growing 5,000 privately-held companies in the United States. The list was ranked by the three-year revenue growth of each of the cities' companies.

Houston had a three-year revenue growth 117 percent with 84 Houston companies on the 2019 Inc. 5000 list.

"After Hurricane Harvey hit in 2017, the Houston area's construction industry grew tremendously to help rebuild and repair the storm's damage," the short ranking blurb reads, mentioning two Inc. 5000 companies in Houston: oil pipeline services company JP Services (No. 792) and contractor services firm CC&D (No. 1,973).

Houston beat out Dallas (No. 10) by just 4 percent three-year revenue growth and 10 Inc. 5000 companies. The article calls out Dallas for its "low regulations, zero corporate income taxes, and the Dallas Entrepreneur Center, or DEC, which is a nonprofit organization serving as a hub for startup networking, funding, and mentorship."

Meanwhile, Austin, which ranked No. 2 on the list, had a three-year revenue growth 259 percent, and has 87 Inc. 5000 companies this year. Austin was praised for its "high rate of entrepreneurship and job creation" in the article, as well as for having outposts for top tech companies like Amazon, Apple, and Google.

Here's the full list:

  1. San Francisco
  2. Austin
  3. New York City
  4. San Diego
  5. Atlanta
  6. Denver
  7. Los Angeles
  8. Chicago
  9. Houston
  10. Dallas

Earlier this month, Business Facilities magazine named Houston the fourth best startup ecosystem in the U.S., as well as the fourth best city for economic growth potential. Similarly, Commercial Cafe recently named Houston a top large city for early stage startups.

Susan Davenport, senior vice president of economic development for the Greater Houston Partnership, previously told InnovationMap that it's the city's diversity that keeps the city growing and resilient.

"The region's steady population increases, coupled with our relatively low costs of living and doing business, bode well for our economic growth potential reflected in this ranking," Davenport says.